The Corner

Obama Administration vs. Health-Care Fraud

Fraud is a huge problem for American health insurance — both public and private. As the Cato Institute’s Michael F. Cannon pointed out in NR several months ago, fraud against Medicare and Medicaid alone costs about $87 billion a year.

The good news is that the Obama administration is on track to increase health-care-fraud prosecutions by about 85 percent this year. The bad news is that it’s not enough — last year, there were only 731 such prosecutions; another 600 or so will be merely a drop in the bucket.

Over at the Cato blog, Cannon quotes fraud expert Malcolm Sparrow:

By taking the fraud and abuse problem seriously this administration might be able to save 10 percent or even 20 percent from [the] Medicare and Medicaid budgets. But to do that, one would have to spend 1 percent or maybe 2 percent (as opposed to the prevailing 0.1 percent) in order to check that the other 98 percent or 99 percent of the funds were well spent.  But please realize what a massive departure that would be from the status quo. This would mean increasing the budgets for control operations by a factor of 10 or 20. Not by 10 percent or 20 percent, but by a factor of 10 or 20.

Most Popular

U.S.

Questions for Those Who Believed Jussie Smollett

The “we reported the Jussie Smollett case responsibly” contention has been blasted to smithereens. Twitter accounts and headlines in the Washington Post, the New York Times, and the Los Angeles Times reported as fact Jussie Smollett’s wildly implausible allegations, and many other journalists did so as ... Read More
U.S.

Regular Order

Jussie Smollett’s story has always sounded a little . . . extraordinary. Smollett, who appears on the television series Empire, says he was attacked on the streets of Chicago at 2 a.m. by two men who shouted racial and homophobic abuses at him, beat him, doused him with bleach, and fastened a noose around ... Read More